A.I.M. Users Bulletin Board

[SFSecurity]

Hi jaiml, RE:

1) Find a stock that has been dropping from a high point so that a virtual BTB AIM - started at that high point - would've triggered at least one or more buys (no sells in between).

This is very similar to what I've been tracking. Buy on the first uptick in price after a series of buy signals. Sometimes there are more buy signals than you have cash available but this only happens when it is diving deeper than the average.

2) If the price today is out of the buy zone, then add up all the buys and buy them in one chunk. If however the price is still in the buy zone (i.e. the downtrend continues or there are still some remaining leftovers to buy), then one can choose to wait, but that is subjective. One can make an exception for an entry point if the trend has not fully reversed yet; it all depends on how much the stock has failed by now.

Yep, exactly what I've been tracking on backtesting with a couple of caveats.

Rule one is to attempt to fine tune cash for the usual volatility using BTB AIM so that you never are in a negative cash position. Rule two is to never buy more than the average cash you have found to work reasonably well with BTB AIM.

If you do not do the first step you wind up with crazy cash positions well above 60% and your earning go way down because you have too much idle cash. This is much like you are finding with you only buying a small percentage of your total. Your idea of using a virtual amount for your AIM position accomplishes much the same result, getting more of your money into the investment.

Warmest Regards,

Allen